The California Tax Credit Allocation Committee released a Development Section Resyndication Questionnaire Memo. This memo is applicable to projects with existing low income housing tax credit allocations that are requesting a new reservation of tax credits (a resyndication). The questionnaire in the memo must be completed when submitting a resyndication application. Do not use the Ownership Transfer memo located on the Compliance webpage.
Please note, most resyndications result in equity distributions and therefore require a qualified capital needs assessment (CNA). The CNA must be commissioned by the lender, and for projects that have short term work requirements, this lender-commissioned CNA must demonstrate a rehabilitation need of at least $5,000 per unit over the first three years. TCAC staff has found that a large number of applicants are not aware that their resyndication application is subject to these requirements, or have incorrect calculations of short term work. As a result, the CNAs provided are not demonstrating that the minimum rehabilitation requirement is being met. In these cases, the project does not qualify for resyndication. TCAC staff asks that if you are considering a resyndication application, review the memo with your development team and ensure that all parties involved understand the minimum TCAC requirements. Significant errors can result in an application being removed from a scheduled Committee meeting for a reservation of tax credits.
Please contact your regional analyst with questions.